Institutional Investors in Farmland – Part Two
This is Tim Hammerich from the Ag Information Network with your Farm of the Future report.
What happens when an out-of-town investor buys a large tract of farmland in your area? Farmland investment consultant Skye Root says that in many cases they lease this land to local farmers and they will likely want to look to advanced farm management approaches.
Root… “A lot of them are leading the charge to really look at the technology and see how we can do so many more more efficiently. Whether it’s from a biological perspective of using fewer inputs so we don’t affect our watershed as much, or just from a cost-effective perspective. Right down to irrigation technology, you know, high-efficiency sprinkler sets and soil moisture monitors and probes that, you know, go where you’re not putting too much water on the soil . And so on.”
Root says some will even share some of the farmer’s costs to adopt new technology.
Root… “You see the cost sharing between, you know, some of these progressive farmers and the funds. Where it’s like, hey, we’ll cost-split 50-50 with you on new technologies that allow the farmer to be more efficient, but also add an ESG scenario and you know, like a real benefit to the closed.
Root is the owner of Root Agricultural Advisory based in Boise, Idaho.